The NBA just landed a bigger fish than anyone ever expected. Richard Sandomir of the New York Times reports the NBA’s popular new TV deal with Turner Sports and ESPN will rake in $24 billion over nine years.
NBA to announce $24 billion/9 year deal w/ ESPN and TNT on Monday. Annual average value nearly 3x current deal.
— Richard Sandomir (@RichSandomir) October 6, 2014
Annual avg value of new NBA deal soars from about $930M to $2.66B. New deal starts after 2015-16 season. — Richard Sandomir (@RichSandomir) October 6, 2014
As Sandomir said, this deal is about 3 times more than the NBA’s current deal, which is valued at $930 million per year. This huge payout for the NBA has been discussed in NBA circles and pretty much expected throughout the league.
This offseason we saw premier players like Dwyane Wade, LeBron James and Kevin Love pass up opportunities for long term security in their contracts with their respective teams for an opportunity to cash in once the new deal is official.
The deal will not go into effect until the current contract expires after the 2016 season. There is expected to be an inflation in the salary cap, although it is unclear on how the league chooses to spread out the money throughout the life of the deal. The NBA will make close to $3 billion per season with the new deal in place.
The argument of the NBA losing money during the last lockout continues to look more ridiculous as time goes by. The Milwaukee Bucks sold for $500 million, the Clippers were sold for $2 billion and the NBA will continue to increase their revenue with this new deal.
Revenue generated is different from the league’s profit, but you can be sure it will increase as the league’s revenue increases substantially.
The NFL signed a $27 billion dollar TV deal with FOX, NBC and CBS. Turner Sports and ESPN will reportedly be paying the NBA just $3 million less. This shows how much the NBA has grown in popularity over the last decade, even with a lockout that wiped out 16 games from the 2011-12 season.
The league is expected to announce more about the reported deal tomorrow morning at 10 a.m.